Why don't elite colleges expand?
America’s top colleges are facing record demand. So why don’t they increase supply?
Faculty Co-Director, Peter Blair, speaks about his research paper, co-authored with Kent Smetters, entitled “Why Don’t Elite Colleges Expand Supply?" with Freakonomics Radio host, Stephen Dubner.
"We find that when we calibrate the model with prestige on, we’re able to fit the patterns in the data, which show that admissions rates have been declining at elite institutions and also the average SAT scores have been going up both for applicants and also for matriculants. So that’s with prestige on, the model fits."
Find the NBER working paper here: https://www.nber.org/papers/w29309